Freehold Residential Property: The Reasons why you are Acquiring One

Homes in Singapore along with different lease periods:

30-year lease (HDB studio apartments)

60-year lease (private housings)

99-year lease (executive condominiums, private housings, all HDB flats except for studio apartments)

103-year lease (private housings) (Theses houses sit on freehold land owned by private developers.)

999-year lease (private housings)

Freehold (private housings)

*A land affinity at serangoon Jalan Jurong Kechil is only 60-year-lease plot to be sold (on 15 November 2012) for residential development; thus 60-year-lease homes get available early.

Most housings in Singapore either set freehold or 99-year lease, with however making along the bulk.

A 999-year lease is close to equivalent to freehold.

While 30-year-lease HDB studio apartments can be bought in short supply and basically meant for elderly occupants.

Private developments with a 103-year lease period (the lease period is determined by the developer) on freehold land are few and much between. At the expiry from the lease, the non-governmental land owner gets right to re-acquire turned (i.e. reversionary right), sell the freehold tenure or extend the lease for a price.

Residential properties with 60-year lease aren’t available yet, but can in a few years’ time when development on the main 60-year leasehold residential land plot at Jalan Jurong Kechil is finished.

Homes in Singapore are predominantly 99-year leasehold given government sells most visits 99-year tenure due to land scarcity in this country. At the end of the lease period, the state can discover the land without any compensation to the home buyers. Currently, the government does not offer freehold land parcels for sales anymore, aside from the sale of remnant State land to the adjoining landowner whose existing private land is already held inside freehold title.

However, topping up on the lease of leasehold private housings is allowed.

Lessees may apply to get renewal among the lease with the SLA (Singapore Land Authority). The granting of extension is on the case-by-case basis and seem considered if for example the development inside line with Government’s planning intentions, maintained by relevant agencies, and results in land use intensification, mitigation of property decay and preservation of community. Generally if the extension is approved, a land premium, decided through the Chief Valuer, will pay. The new lease will not exceed the original, however it will be the shorter for the original or the lease in step with URA’s planning intention.

In addition, near the finish of the lease period the State may want the land become returned in its original complications. If so, demolition of buildings, land fillings, in addition to. will have to be borne by the current lessees.

For HDB flats, legally the flat will be returned to HDB at the end from the lease. HDB does don’t have to make any monetary compensation, or offer property flat to the owners. The owners may even be required to get any fixtures fitting.